GFA Technologies Group co-founder sees huge potential in CBN data localisation directive

…says to create measurable, long-term demand for sovereign digital infrastructure

The Central Bank of Nigeria’s (CBN) data localisation directive is unlocking unprecedented value for local technology providers, said Adebola Omololu, co-founder of GFA Technologies Group.

The CBN recently directed banks, fintech companies, mobile money operators and other payment service providers to ensure that payment transaction data generated within Nigeria is stored and managed locally in line with applicable data protection regulations, with full compliance expected by January 1, 2027.

“The CBN Data Localisation Directive should therefore be viewed not simply as a compliance requirement, but as a catalyst for Nigeria’s next phase of digital infrastructure development,” Omololu said.

For the first time, a regulatory directive has the potential to create measurable, long-term demand for sovereign digital infrastructure in Nigeria

Emphasising the huge potential hidden within the directive, Omololu noted that requiring sensitive financial data to remain within domestic borders creates guaranteed, long-term market demand for local data centers and cloud services.

While quantifying the infrastructure demand created by the CBN data localisation directive, Omololu said, “The answer matters, not only to banks and fintechs, but also to policymakers, investors, development finance institutions, telecommunications companies, cloud providers, and data centre operators”.

Moving beyond the debate over regulatory compliance, he mapped out the long-term, quantifiable demand for sovereign digital infrastructure generated by the CBN’s data localisation directive.

To him, the verdict is clear: mandating onshore storage for critical financial data creates a sustained, measurable growth trajectory for local tech capacity—marking a pivotal shift toward true digital sovereignty in Nigeria.

Read also: Quantifying the infrastructure demand created by the CBN data localisation directive

He believes that by converting policy into guaranteed domestic utility, the mandate is set to unlock long-term investments, accelerate data center expansion, and establish Nigeria’s true digital sovereignty.

“Our analysis reinforces a conviction that has shaped GFA Data Centers from its inception: digital infrastructure should be built where long-term demand can be demonstrated, not merely where land is available or where capacity already exists.

“This philosophy underpins our plans for the 200 MW Abeokuta Technology Zone (ATZ) Data Centre & Digital Infrastructure Campus, a 9-year, phased, carrier-neutral digital infrastructure campus being developed to support ours and other data center providers, sovereign cloud services, managed infrastructure, disaster recovery, AI workloads, enterprise colocation and future hyperscale expansion,” Omololu said.

“For the expected demand from regulated financial institutions and payment service providers, our commercial strategy is deliberately focused on managed infrastructure services, sovereign cloud enablement, disaster recovery and compliance hosting, for enabling us to create and aggregate long-term infrastructure demand while supporting organisations on their digital transformation journey. We believe that combining demand generation with infrastructure development represents a more sustainable model for accelerating Africa’s digital transformation,” he further said.

“According to actual and extrapolated data from the Central Bank of Nigeria, the country processed the following electronic payment transactions from 2021 to 2026 which include mobile money transactions, alongside billions of transactions across NIBSS Instant Payments (NIP), POS terminals, ATMs, internet banking and other electronic payment channels. 2021 (Actual) – 16.3 billion transactions; 2022 (actual) – 22.1 billion transactions – 35.6 percent growth; 2023 (actual) – 38.7 billion transactions – 75.3 percent growth; 2024 (estimated) – 44.8 billion transactions – 15.8 percent growth; 2025 (projected) – 51.9 billion transactions – 15.8 percent growth; 2026 (projected) – 60.1 billion transactions – 15.8 percent growth,” he noted.

Omololu further noted that “behind every one of these transactions sits an increasingly complex digital infrastructure comprising payment switches, databases, cybersecurity platforms, backup systems, disaster recovery environments and analytics platforms.

“As transaction volumes continue to grow, so too does the strategic importance of resilient domestic infrastructure. The CBN directive therefore represents far more than a compliance requirement, it represents an infrastructure milestone”.

“By the end of 2026, we expect Nigeria would have processed more than 60 billion electronic payment transactions for the year. Supporting an ecosystem of that scale will require more than software innovation. It will require sustained investment in sovereign digital infrastructure, including carrier-neutral data centres, resilient power systems, fibre connectivity, disaster recovery facilities, cybersecurity platforms and highly skilled digital infrastructure professionals.

“The infrastructure deployed to support today’s payment systems will also provide the foundation for tomorrow’s AI workloads, digital healthcare, e-government services, education technology and enterprise cloud adoption,” he added.